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Risk Mitigation & Litigation Avoidance: Part 3

When to Fight & When to Settle

When determining whether to fight or whether to settle, several key components must be factored before making a final decision. The value of the claim must be weighed, insurance policies must be reviewed, the potential for bad press should be investigated – all the above are areas to consider before determining how to proceed. Litigation Principal Tracy Francis shares her insight about how she counsels her clients in ‘fight or settle’ situations.

Know Your Client & Their Objectives

It is vital to know your client, what they want, and what they don’t want. Is this a make it or break it situation? Anticipate how the claim will look in the press. Is the press associated with fighting worth the result? Understand insurance policies fully. What is their coverage limit?

Take a Realistic Approach

In proceeding with litigation, will a judgement ever be able to be collected? You don’t want to throw good money after bad and pursue something that you’re not going to get anything from. The cost benefit of proceeding with litigation must be closely reviewed. Is proceeding going to be a cost on your employees and company morale?

Consider Potential Counter Claims & Prepare Accordingly

When determining next steps, you must prepare for possible outcomes of either avenue you decide to take. If you decide to proceed with litigation, what are potential counter claims that can come from the other side in retaliation? Will those counter claims hurt you? How can the potential counters be embraced and how will you act in their presence? If you decide to settle, will that be enough?

Understanding the client, their business, and the claim is necessary to evaluate the current situation and to successfully plan for potential future outcomes. In doing all these things, you are better able to determine how well you are set up to fight or if you are better off settling.

If you’re unsure if you should proceed with litigation or if you should seek settlement, please reach out to request a consultation or visit Tracy’s bio for her contact information to reach out to her directly.

Author

  • Tracy S. Francis

    Tracy S. Francis

    Tracy Francis is a Principal at McCarthy Lebit in the firm's litigation group where she focuses her practice on business litigation, complex commercial, class action, fraud, employment, product liability, environmental, intellectual property, and defamation litigation. Learn more about Tracy and her practice.

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